The LMN Partnership has the following assets and liabilitiesbefore any reduction for year-end principal payments on theliabilities. Assume the book basis and tax basis are the sameamount. Assets Basis=$300,000 Value= $400,000. Nonrecourse debt = Basis $500,000 and Value = $500,000. If thepartners have a deficit in their capital accounts of ($100,000),what is the amount of minimum gain chargeback if partnership lossfor the year is ($20,000) and the liabilities are reduced by$250,000? Please explain answer. A. $0 B. $20,000 C.$50,000 D. $100,000. Please showexplanation and math.
